Chancellor MP has delivered the 2021 Budget, announcing a three
part plan as part series of measures to continue support for
businesses as the UK recovers from the Coronavirus pandemic.
Headline measures announced by the Chancellor
include:
-
100% business rate relief will be extended for
three months to the end of June, with a subsequent 2/3 discount
applying until the end of the 2021/22 financial year (subject
to a maximum cap of £105k for businesses that have remained
open)
-
A ‘super deduction’ that means for the next two
years, when companies invest they can reduce their tax bill by
130% of the cost of that investment
-
The furlough scheme will be extended until the end
of September with employers asked to contribute 10% from July,
and 20% from August
Association of Convenience Stores chief executive
James Lowman said: “We strongly welcome the short term measures
that the Chancellor has announced to avoid a sudden shock in
business rates increases for local shops. The upcoming review of
business rates will be crucial in shaping our economic recovery
from Covid-19, and we have long argued for the system to be
designed to promote and reward investment. It is therefore
encouraging to see the Chancellor sharing our focus on promoting
investment through his announcement of the new ‘super
deduction’.”
Other measures announced in the Budget
include:
-
A £5bn grant scheme to help businesses hit hardest
by the pandemic, with individual grants worth up to £18,000 for
hospitality and up to £6,000 for non-essential
businesses
-
Fuel duty rates and alcohol duty rates to be frozen
for the 2021/22 financial year
-
The reduced rate of VAT for food and non-alcoholic
drinks sold for on-premises consumption and hot takeaway food
is to be extended by six months to September 2021, with an
interim rate of 12.5% for the following six months to April
2022
-
The VAT registration threshold to be frozen at
£85,000 until 2026
Mr Lowman continued: “The impact of the pandemic has
not been felt evenly, with many local shops and other essential
businesses in city centres and other areas severely impacted. We
are urging the Government to extend the new £5bn grant scheme to
those businesses to help them recover.”
